Opening the Bank Account

At this point, Bruno’s Place LLC has a Certificate of Formation from the State of Texas and an Employer Identification Number from the IRS. It’s time to open a bank account. As it turned out, we should say set aside time to open a bank account. What should have taken 15 minutes stretched into an hour.

I won’t name the bank because I suspect they all work the same. I picked this bank only because we already have accounts there. Online, I tried to open a business account. I worked my way through the entire menu then received the message that I had to open the bank account in person at the bank.

checking

Image credit: echeck.org

I wondered how we could open a business bank account online. You have to produce identification so that someone sees that you are a real person and confirms who you are. There are at least three reasons for this: The IRS keeping track of things, drug money and terrorism. I get all that but I wish the bank website had said we needed to apply in person right from the get-go.

In the past, when I have opened corporate accounts, the bank has requested a corporate resolution authorizing an account to be opened and naming the signatories. Banks usually keep form resolutions on hand for that purpose. But we are an LLC, plus the bank has its own forms, online. Two of them were necessary: One identifying the owners of the LLC, the other authorizing the bank to obtain information about us and identifying who can sign checks and speak for the LLC to the bank.

After some difficulty with the .pdf fill-in forms, I managed to complete them and print them out. My wife and I signed them and took them to the bank. Well, guess what? Everything is electronic now. So we sat and watched the bank officer type in the information I already had typed into the forms.

Eventually, our account was opened. We turned down the offer of checks because we know we can get them cheaper online. We did get a debit card to facilitate transactions, and we can pay bills directly from the bank’s website. Eventually, we might link our account to QuickBooks to facilitate bookkeeping.

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